25. February 2024

Coinbase to Roll Out BTC & ETH Futures, Targeting Institutional Investors

Coinbase Derivatives Exchange Set to Roll Out BTC and ETH Futures

• Coinbase announced plans to introduce Bitcoin (BTC) and Ether (ETH) futures contracts on June 5 through its Commodity Futures Trading Commission-regulated derivatives exchange.
• The contracts will be targeted toward institutional investors and sized at 1 Bitcoin and 10 Ether.
• Coinbase’s decision to establish a derivatives exchange coincides with its ongoing efforts to address the need for regulatory clarity surrounding the trading of digital assets in the United States.

What is Coinbase?

Coinbase is a public crypto exchange that provides services related to buying, selling, and storing digital currencies such as Bitcoin (BTC) and Ethereum (ETH). It also offers a range of products designed specifically for institutional investors including an over-the-counter trading desk, custodial services, and advanced order types.

Details of the Futures Contracts

The newly announced institutional-sized contracts will have a specific size of 1 Bitcoin and 10 Ether. This sizing is intended to enable clients to effectively manage market exposure, while all trades conducted on the exchanges will be settled in Circle’s USD Coin (USDC) stablecoin.

Coinbase’s International Expansion Strategy

On May 2, Coinbase announced its strategic move to launch a derivatives exchange in Bermuda as part of its international expansion strategy. The exchange allows traders to engage in speculation on the prices of Bitcoin and Ethereum through perpetual futures contracts which offer leverage up to 5x.

Conclusion

As the cryptocurrency industry faces regulatory challenges in the United States, public crypto exchange Coinbase is moving forward with its plans for launching BTC and ETH futures contracts for institutional investors via its regulated derivatives exchange. With this move, Coinbase aims to provide innovative solutions tailored towards meeting their specific needs while addressing current regulatory issues surrounding digital asset trading in the US.